Daehan Steel (084010) 🔎 In-depth
KOSPI · Price as of 2026-08-06 · Updated 2026-08-09
Daehan Steel melts scrap in electric-arc furnaces to make molten steel and rolls it into rebar and some sections and bar used at construction sites, so most of its revenue tracks the domestic construction cycle directly, and the margin left after subtracting scrap-purchase prices and electricity from the rebar sales price becomes its profit, making it a cycle-sensitive materials business. Its April 29 Q1 preliminary results and May 15 quarterly report confirmed that revenue rose year over year but operating profit is still near a bottom, and on March 26 it presented a corporate-value-up plan and confirmed a ₩500-per-share dividend (a yield in the mid-6% range). What stands out is that the price is pressed down to 0.34x net asset value, core earnings are in a recovery phase off the bottom so the forward P/E is lower than peers, and even in a year of falling earnings it held a mid-6% dividend and a 58.9% payout ratio; on the other side, as a materials business that rides the cycle directly, if construction weakness and rebar-scrap margin pressure drag on, the recovery pace can slow, so operating profit direction must be checked each quarter.
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30-second brief
Pulled directly from the computed values below — not a separately written opinion.
What do the SourceComputedEstimateReading tags mean?
Source filings and exchange data · Computed calculated from public data · Estimate our own unverified projection · Reading drafted automatically, then rule-checked. See AI & Automation.
Core valuation metric
This stock's effective sub-sector is “Bar & Section Steel (Construction-Linked)” (Chemicals, Refining, Steel & Materials · Steel & Metals), a type typically read first through P/B.
Rebar and section steel is a classic cyclical, with margins riding construction activity and scrap costs, so the gap between boom and bust earnings is wide. When profits are this uneven, current-year multiples wobble, so price-to-book (P/B) — the share price against asset value — is the first lens.
Price against assets alone says little about where the cycle stands. Reading it together with price against this year's expected earnings shows how far profits have recovered.
That said, earnings are swinging with the industry cycle right now, so this metric is best viewed alongside asset value and the demand backdrop.
This note explains how each sector is typically valued and is educational context only, not investment advice.
At-a-glance assessment financial health · growth · profitability · valuation
- Debt ratio, current ratio and interest burden all look healthy.
- Revenue rose 1.8% year over year, and the pace is quickening (3-year trend: mixed).
- Most recent quarter (Q1 2026) revenue was 5.5% higher than a year earlier.
- ROE is 1.0% (controlling-interest basis). It is above the sector average.
- Operating margin is -0.4%.
- A sector-metric and in-depth research verdict — see “Valuation vs peers” below for the basis.
Ownership & governance As of 2023-12-31
Largest shareholder Oh Chi-hoon 22.49% (individual)
Controlling bloc incl. related parties 40.96%
With the controlling bloc holding 41%, the ownership structure is stable.
🔎 In-depth analysis Reading
Daehan Steel melts scrap (steel scrap) in electric-arc furnaces (EAF, an electric-furnace steelmaking method) to make molten steel and rolls it into rebar and some sections and bar used at construction sites. Because most of its revenue is construction-materials steel directly tied to the domestic construction cycle, the gap between construction-start volumes (for apartments, civil works, and so on), rebar distribution prices, and the price of the raw material scrap (the so-called metal margin) becomes its profit. Put simply, when 'rebar sales price minus scrap purchase price minus electricity' widens it earns money, and when it narrows, profit thins. Understanding first that this is not an advanced product but a materials business that rides the cycle directly makes it easier to read the ups and downs of results.
The latest close is ₩8,350 and the market capitalization is ₩287.0 billion. The price sits above its 20-day moving average (₩7,644) and below its 60-day moving average (₩8,480). Short-term and medium-term trends are diverging, so the direction is best read separately. The RSI (a supplementary indicator that gauges the strength of gains versus losses over the past 14 days on a 0-100 scale) is 58.7, a neutral level. The one-month change is +4.9%, the three-month change is -32.7%, and the position relative to the 52-week high is -59.9%. Relative strength versus the KOSPI is 5 (on a 1-99 scale, converted from returns against the index over the past year with more weight on recent performance; higher means stronger than the market). It is stronger than roughly 5% of all stocks. Over the past three months it lagged the index by 18.1%. Chart interpretation is best done alongside trading volume and the dates on which disclosures occur.
The P/B (how many times net asset value the price trades at) is 0.36x, trading at about a third of book net asset value. On asset value alone, it is considerably pressed down. The P/E ratio (how many times a year's net profit the price trades at) is about 18x on a confirmed annual basis, but reading that number at face value invites a misunderstanding. 2025 was a year in which core operating profit hit a bottom at -₩2.9 billion, so the denominator, earnings itself, was abnormally suppressed. It is natural for the P/E of a year when earnings bottom to show high, and for such an earnings-inflection stock, the forward P/E that reflects future earnings is closer to the true picture. That forward P/E is distinctly lower than peers and reads as an undervaluation signal. In other words, once core earnings return to a normal track, the current price is cheap even relative to earnings. Financial strength also supports it: the debt ratio (the size of debt relative to equity) is 156%, not heavy, and the current ratio (assets convertible to cash against debt due within a year) is 262%, so short-term payment capacity is ample. The dividend is ₩500 per share, a yield in the mid-6% range, with a payout ratio (the share of earnings paid out as dividends) of 58.9%, and it is notable that it kept the dividend even in a year of falling earnings.
Over the past few years, revenue moved from ₩1.45 trillion in 2023 to ₩1.22 trillion in 2024 and ₩1.25 trillion in 2025, coming down once with the construction slowdown before rebounding slightly (+1.8%) in 2025. Over the same period, operating profit fell to -₩2.9 billion in 2025 as construction weakness and rebar-scrap margin pressure overlapped, with the core business hitting a bottom. The key is what comes next. A forward P/E based on this year's expected earnings takes shape, pointing to a phase where core earnings emerge from last year's loss bottom into a distinct recovery. This recovery is not a simple annualization of a single short quarter, but a picture reflecting margin normalization and passage through the demand trough. That said, because the recovery starts from a loss, it is best to follow it while checking each quarter whether operating profit actually heads up.
Recent disclosures concentrate on earnings and shareholder-return policy. The April 29 preliminary Q1 2026 results (fair disclosure) and the May 15 quarterly report confirm that revenue rose year over year but operating profit is still near a bottom. The recovery of core earnings will become visible as the year's quarters pass. On March 26, the company presented a corporate-value-up plan (voluntary disclosure), laying out a direction for shareholder returns and capital-efficiency improvement while the P/B is well below 1x (readers are advised to confirm the specific numerical targets in the disclosure body). On the same day, the annual shareholders' meeting confirmed the fiscal-2025 dividend (₩500 per share), and on March 3 there was also a disclosure of a change in a large-holding stake. Rather than general news, viewing these original disclosure schedules overlaid with results is the safest way to confirm facts.
This is a stock with clear strengths. First, the price has come down to 0.34x net asset value, deeply pressed relative to asset value; second, because core earnings are in a recovery phase off last year's bottom, the forward P/E is set lower than peers. Two signals appear together: cheap on assets and cheap on normalized earnings. Third, even in a year of falling earnings it kept a mid-6% dividend and a 58.9% payout ratio, showing a commitment to shareholder returns, and March's corporate-value-up plan aligns with resolving the low P/B. Meanwhile, one should also note that, by nature, this is a materials business that rides the cycle directly, so the range of swings in results is wide. In sum, this stock strengthens as construction starts pass their trough and the rebar-scrap margin widens, with the low P/B, dividend, and recovering earnings coming to the fore at once. Conversely, if construction weakness and margin pressure drag on longer than expected, the recovery pace can slow, so the key is to watch each quarter whether operating profit heads up.
🔎 Valuation vs peers Inconclusive
We compared first with stocks whose business substance of construction rebar and electric-arc-furnace (EAF) steelmaking is most similar, and added large steelmakers for reference to provide industry-scale context.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| Korea Steel | — | 0.47x | -1.16% |
| Kiswire | 48.36x | 0.25x | 1.31% |
| POSCO Steeleon | 16.25x | 0.72x | 3.59% |
| Hyundai Steel | — | 0.19x | -0.04% |
On P/B (versus net assets) alone, at 0.38x it is in an undervalued zone below the industry average, alongside Korea Steel (0.41x) and Hyundai Steel (0.24x). However, the P/E shows about 20.5x because 2025 net profit turned positive through non-operating items amid a core operating loss, so its reliability is low in an earnings-inflection phase. On the forward side, with no official company guidance, only a DART seasonality approximation (about ₩0.2 billion of operating profit this year) can be pinned down, and this too is near breakeven, making it hard to flatly call it cheap or expensive. Ultimately, on asset value it is pressed down but its earnings power recovery is not confirmed, so we leave judgment inconclusive, viewing it as a structure where the low P/B can be justified only when a recovery in construction starts and an improvement in the rebar-scrap margin accompany each other.
Earnings outlook Estimate company-stated · verified
| Type | Period | Revenue | Operating profit | Net profit |
|---|---|---|---|---|
| Next quarter | Q2 2026 | approx. ₩353.6 billion | approx. ₩0.1 billion | — |
Price history Close · MA20 · MA60
The latest close is ₩8,350 and the market capitalization is ₩287.0 billion. The price sits above its 20-day moving average (₩7,644) and below its 60-day moving average (₩8,480). Short-term and medium-term trends are diverging, so the direction is best read separately. The RSI (a supplementary indicator that gauges the strength of gains versus losses over the past 14 days on a 0-100 scale) is 58.7, a neutral level. The one-month change is +4.9%, the three-month change is -32.7%, and the position relative to the 52-week high is -59.9%. Relative strength versus the KOSPI is 5 (on a 1-99 scale, converted from returns against the index over the past year with more weight on recent performance; higher means stronger than the market). It is stronger than roughly 5% of all stocks. Over the past three months it lagged the index by 18.1%. Chart interpretation is best done alongside trading volume and the dates on which disclosures occur.
Relative performance stock vs index · start = 100
Excess return vs index · 3M -18.11% / 6M -37.43% / 12M -73.84%
Key metrics Computed vs sector median
Valuation
The P/E of 19.53x is above the sector median (14.17x). The P/B of 0.36x is below the sector median (0.45x).
Enterprise value (EV)
EV = market cap + net debt. It reflects cash and debt, so it captures the real cost of the whole business that market cap alone misses; lower multiples are cheaper relative to earnings or sales.
Intrinsic value (DCF estimate) Estimate
Model output — not a price target. This is what the formula returns under the assumptions below, not a view on where the share price should go.
DCF (discounted cash flow) estimate — discount rate 10.1%, initial growth 4.0%→terminal 2.0%, 10-yr forecast, free-cash-flow basis. A reference range that shifts materially with assumptions.
Profitability & financials
Return on equity (ROE) is 1.0%, in line with the sector average (1.0%). The operating margin is -0.4%. The debt ratio is 40.6%, so the financial structure is stable.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $1.0B | $860.2M | $876.1M | +1.84% ↑ faster |
| Operating profit | $77.2M | $7.2M | -$2.0M | -127.84% ↓ slower |
| Net profit | $50.6M | $26.4M | $10.3M | -60.83% ↓ slower |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $1.4B | $1.5B | $1.0B | $860.2M | $876.1M |
| Operating profit | $141.8M | $151.3M | $77.2M | $7.2M | -$2.0M |
| Net profit | $99.5M | $88.2M | $50.6M | $26.4M | $10.3M |
| Revenue CAGR | 4-yr avg -11.47% | ||||
Revenue rose 1.8% year over year (2023 ₩1.4 trillion → 2024 ₩1.2 trillion → 2025 ₩1.2 trillion), and the three-year trend is 'mixed'. The pace of growth also quickened from the prior year. Operating profit fell 127.8% year over year. The decline widened. Over the 5 years on record, revenue compound annual growth (CAGR) is -11.5%. The two-year revenue CAGR is -7.2%. In the most recent quarter (Q1 2026), revenue was 5.5% higher than the same period a year earlier.
Latest quarterly results Source Q1 2026 · vs year-ago
Technical indicators Computed
What stands out
- The dividend yield, at 6.0%, is on the high side.
- The balance sheet is stable in terms of debt and liquidity.
Points to watch
- The price is high versus peers, so expectations already appear priced in.
Recent news & events searched · sourced
- 2026-04-29EarningsPreliminary consolidated Q1 2026 results (fair disclosure) — revenue of ₩305.6 billion (up 5.5% year over year), operating profit of ₩64.46 million, confirming a sharp drop in core earningsShort term: the top line rose, but operating profit down 96.5% year over year highlights weakening core earnings power. Medium term: whether the operating-profit recovery continues quarter by quarter is the premise for valuation normalization. Source
- 2026-05-15FilingQ1 2026 quarterly report — cumulative revenue of ₩305.6 billion, net profit of ₩0.167 billion, and other confirmed results and financial position disclosedShort term: confirms the preliminary figures. Medium term: primary material for checking financial strength such as a debt ratio of 56% and current ratio of 262%, and quarterly cash flow. Source
- 2026-03-26FilingCorporate-value-up plan (voluntary disclosure) — direction for improving capital efficiency and shareholder returns presented while the P/B is below 1xShort term: room to be read as a will to resolve the low P/B. Medium term: the effect hinges on whether it leads to actual dividend and capital policy execution and ROE improvement (confirm specific figures in the disclosure body). Source
- 2026-03-26DividendResults of the annual shareholders' meeting — the fiscal-2025 dividend (₩500 per share) and other agenda items confirmedShort term: a dividend yield in the mid-5% range confirmed, maintaining income appeal. Medium term: whether the dividend can be sustained amid slowing earnings (payout ratio of 58.9%) is next year's point to watch. Source
Figure cross-check computed ↔ external
| Metric | Computed | External | Status | Source |
|---|---|---|---|---|
| Q1 2026 revenue | ₩305.6 billion | ₩305.6 billion | Confirmed | link |
| Q1 2026 operating profit | 6,446 | 6,446 | Confirmed | link |
| 2025 annual operating profit (consolidated) | -₩2.9 billion | -₩2.9 billion | Confirmed | link |
| Dividend per share / dividend yield | ₩500 / approx. 5.7% | ₩500 | Confirmed | link |
| 2026 seasonality-approximated operating profit (annual) | approx. ₩0.2 billion | — | Unverified | link |
Recent filings Source
- 2026-06-01Corporate governance report
- 2026-05-15PeriodicQuarterly report
- 2026-04-29EarningsFair-disclosure notice
- 2026-03-26Disclosure
- 2026-03-26Shareholders' meeting notice
- 2026-03-18PeriodicAnnual business report
- 2026-03-18Audit report
- 2026-03-10Amended filing
- 2026-03-10Amended filing
- 2026-03-05Disclosure
- 2026-03-05Shareholders' meeting notice
- 2026-03-03OwnershipOwnership-change filing
📖 Plain-language glossary — expand if you are new to this
- P/E
- How many times a year's net profit the price is worth (lower is cheaper relative to earnings). The P/E here is on trailing (last full-year) results; for companies whose earnings swing fast (memory chips and other cyclicals/high-growth), a forward P/E on this year's expected earnings is more accurate.
- P/B
- Price relative to net assets (equity). Around 1x means it trades near book value; below 1x means below book.
- P/S
- Price relative to a year's revenue — useful for growth companies with thin earnings.
- Net debt / EV
- Net debt = interest-bearing debt − cash. Negative means more cash than debt (net cash). EV (enterprise value) = market cap + net debt, closer to what it would cost to buy the whole business.
- EV/EBIT · EV/EBITDA · EV/Sales
- Enterprise value against operating profit (EBIT), EBITDA, or revenue. Unlike P/E these reflect debt and cash; lower is cheaper relative to earnings power or sales.
- FCF / FCF yield
- Free cash flow = operating cash − capex, the cash actually left over. FCF yield = FCF ÷ market cap; higher means more cash generated per unit of market value.
- Intrinsic value (DCF)
- Future free cash flow (or, for some capex-heavy but profitable names, forecast earnings) discounted to today to estimate per-share value. Because it shifts a lot with the discount-rate and growth assumptions, it is shown as a bear/base/bull range, and the basis and assumptions are disclosed in one line beneath it.
- ROE
- How much profit the company earns in a year on its equity (%). Higher means better returns on capital.
- EPS / BPS
- Earnings per share / net assets (book value) per share.
- Operating / net margin
- Profit left from the core business / final profit after tax and interest, per unit of revenue.
- Debt ratio
- Debt relative to equity (%). Higher means more reliance on borrowing (norms vary by sector).
- Current ratio
- Assets convertible to cash within a year against debt due within a year. Above 100% leaves some short-term headroom.
- Interest coverage
- How many times operating profit covers the interest owed. Below 1x means operating profit alone struggles to cover interest.
- Dividend yield / payout ratio
- The year's dividend as a % of today's price / the share of earnings paid out as dividends.
- Revenue CAGR
- Multi-year growth expressed as a single yearly average (compound annual growth rate).
- RSI (short-term signal)
- Whether recent price action is overheated or beaten down. Above 70 is overbought, below 30 oversold.
- MA20 / MA60 (moving averages)
- The 20- and 60-day average price. Price above them signals a firmer short-term trend.
- vs 52-week high
- How far below the past year's peak the price sits now (%).
All figures are for reference only; how they read varies by sector and over time.
Sources: Korea FSC market-price API (data.go.kr), OpenDART, KRX/KIND — public data only.
Bong Stocks presents public-data-based information for reference only. It is not investment advice and contains no target prices, ratings, or buy/sell recommendations. Verify independently before making any decision.